Acquisition

De La Rue PLC
23 September 2002









                                 DE LA RUE PLC



News Release 23 September 2002



                    SECURITY PRODUCTS MANUFACTURING REVIEW,

                      CLOSURE OF HIGH WYCOMBE FACTORY AND

                       ACQUISITION OF HOUSE OF QUESTA LTD



De La Rue has now completed the manufacturing review of its Security Products
business.  This review, announced in May 2002, has identified significant
duplication of manufacturing capabilities and technologies across its security
printing operations and surplus capacity.  In response, the Company intends to
reorganise the manufacturing base to create highly focused centres of excellence
at each of its facilities.  These will be grouped around main product classes
and their respective specialist production processes.



In addition, to address the current overcapacity problem De La Rue is announcing
today its intention to cease production at its High Wycombe facility in the UK,
subject to appropriate employee consultation.  As part of the move to more
focused manufacturing De La Rue will also develop its factories in the UK at
Peterborough and Dunstable, and its overseas facilities in Dulles, USA and
Nairobi, Kenya.  The proposed closure of High Wycombe will result in a lower
production capacity overall, but the reorganisation of the remaining printing
facilities will accommodate existing sales requirements for the foreseeable
future.



The reorganisation, which will involve the transfer of capital equipment from
High Wycombe and some additional investment at other facilities, is expected to
be completed by the end of June 2003.  As a result the main benefits of the move
will arise in the 2003/2004 financial year.  Costs of the reorganisation,
including the closure of High Wycombe, will result in an exceptional charge, to
be taken in the current financial year of approximately £17.7m, £6.1m of which
is non-cash.



Consultation with the workforce of 350 at High Wycombe is now taking place.
Where appropriate, the Company will explore the opportunities for existing staff
at both sites to transfer to the other De La Rue security printing locations
where their skills can be utilised.



Acquisition of House of Questa Ltd



De La Rue is also announcing today the acquisition of the entire share capital
of House of Questa Ltd, a UK based high security gravure printer for a total
consideration of £3.2m.  House of Questa employs 75 people and has a single site
gravure printing facility based in Byfleet, UK, manufacturing postage stamps,
fiscal stamps and motor vehicle tax discs.



Subject to employee consultation, De La Rue proposes to consolidate existing
gravure printing operations based at High Wycombe to the single purpose House of
Questa facility.  The site will become a centre of excellence for postage stamp
production and other high security gravure web printing.  De La Rue believes
that in consolidating these operations, there is scope for incremental sales and
considerable cost savings.



Ian Much, Chief Executive, commenting on the outcome of the Security Products
manufacturing review said:



'The restructuring programme announced today will result in a cost base which
better matches the expected level of sales and will produce a leaner, fitter
business for the future.  The proposed closure of our High Wycombe site, while
painful, is necessary to reduce capacity and deliver the required operational
improvements to get the business on a firmer footing for the future.'



                                     -ends-



For further information please contact:



De La Rue plc



David Finnett       Group Financial Controller        [phone]

Mark Fearon         Head of Corporate Affairs         [phone]

Stephen Breslin Brunswick                             [phone]



Notes to Editors:



 1. Security Products' Portals Bathford paper mill and Tapes businesses in the UK
    will continue their specialist focus and are not directly affected by the
    manufacturing review, but will undertake local cost reduction measures.






                      This information is provided by RNS
            The company news service from the London Stock Exchange